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Sunday, November 24, 2013

Byker v. Mannes case brief

Byker v. Mannes case brief summary
641 N.W.2d 210 (2002)

CASE SYNOPSIS

Plaintiff individual and defendant
individual associated as co-owners to conduct several businesses for
profit. Plaintiff sued defendant for recovery of money expended on
the businesses. The circuit court found in favor of plaintiff.
Defendant sought review and the Michigan Court of Appeals reversed
the judgment of the circuit court. Plaintiff sought further review.

CASE FACTSDefendant asserted that he was not in
partnership with plaintiff, but was merely an investor in the various
businesses.

ISSUE
The issue on appeal was whether Michigan partnership
law, Mich. Comp. Laws § 449.6(1), required a subjective intent
to form a partnership or merely an intent to carry on, as co-owners,
a business for profit.

DISCUSSION

The Michigan Supreme Court found that:

(1)
pursuant to Mich. Comp. Laws § 449.6(1), in ascertaining the
existence of a partnership, the proper focus was on whether the
parties intended to, and did in fact, carry on as co-owners a
business for profit and not on whether the parties subjectively
intended to form a partnership; and

(2) to the extent that Morrison
v Meister, 212 Mich. 516, and its progeny were read to suggest that
the absence of a subjective intent to form a partnership was
dispositive of the question of whether a partnership existed, such
interpretations were in error.

CONCLUSION
The matter was remanded to the court of appeals for analysis under
the proper test for determining the existence of a partnership under
the Michigan Uniform Partnership Act.Recommended Supplements for Corporations and Business Associations Law

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